Elon Musk’s social media platform, X, is embroiled in a new lawsuit from the Taiwanese technology company Wiwynn, which is claiming $61 million in unpaid bills for server parts totaling $120 million. This legal action asserts that after Musk’s takeover in 2022, X abruptly ceased payments and failed to communicate regarding existing orders.
Key points of the lawsuit include:
– Wiwynn alleges a violation of a 2014 purchasing agreement, specifically for IT products.
– The company had amassed $120 million in parts, believing X would accept responsibility.
– Despite their efforts, X began cutting back on expenditures and did not honor payment requests.
– Wiwynn has reportedly recouped about $59 million in components and seeks damages for the remaining amount.
This lawsuit adds to a series of legal challenges Musk faces, including claims from former executives over unpaid severance totaling $128 million, and other lawsuits concerning unpaid bonuses and shares. Musk has also initiated legal action against advertisers allegedly boycotting X.
Both X and Wiwynn have yet to comment on the matter.